A tour of African gastronomy - World Tourism Organization
HOTEL AND OTA RELATIONSHIP
1. HOTEL & OTA
relationship not wedded bliss
The situation between hotels and OTAs is a
precarious one.
An Expedia official denies that the company
forces hotels to provide a certain rate.
TravelClick advises clients to get no more than
10% of annual occupancy from OTAs. F.N.E
2. Online distribution strategies and competition: are the
global hotel companies getting it right?
The internet has significantly changed the ways hotels
distribute and price their products.
The imminent success of online intermediaries caused
financial problems for hotel chains since online travel
agencies offered better prices than the hotel brand
websites.
The existing literature on hotel online distribution has
focused on pricing strategies and room availability issues
for different segments of hotels.
3. OTA WHAT IS IT?
An online travel agency (OTA) specializes in offering planning
sources and booking capabilities.
OTA have got everybody so scared, because they’re so
aggressive about their tactics.
Being a big company hotel, we rarely get bullied by the OTAs in
regards to pricing or running promotions. Where the bullying
really occurred was when I was with independent or smaller
company hotels that were more dependent on the OTAs.
The OTAs are no more or no less than what we have made
them. …We have no one to blame but ourselves.
4. THE BIGGEST OTAs OF THE MARKET:
Voyages-sncf.com
Expedia, including Expedia.com, Hotels.com, Hotwire.com
Sabre Holdings, including Travelocity, lastminute.com
Opodo
Priceline.com
Orbitz Worldwide, Inc., including Orbitz.com, CheapTickets, ebookers
5. OTA &HOTEL RELATIONSHIP
THE POSITIVE:
- Optimization for hotel in communication and
marketing with the partnership of OTAs.
- Increase revenues by OTAs-viewing customers.
- Packages and promotions to attract the
customers.
6. OTA &HOTEL RELATIONSHIP
THE NEGATIVE:
-Expensive commission rates are really a problem.(OTAs
booking can be >20%!)
- « The big fish eats the little fish »: the biggest hotels
can easily compete and are in a strong position.
- By the amount of hotels on OTAs, customers are in a
forest of informations.
- Difficult control and high competition.